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Monday, July 27, 2015

Market Summary -- 27th Jul 15

FTSE STI closed 3,313.42, down 39.23 points or -1.17% with a total volume of 1.74b and a total value of S$982M. Total number of advance vs decline was 93 vs 402. Of the 30 component index stocks, 3 closed positive, 1 unchanged and 26 in the red. The 3 gainer component stocks were :-

1. StarHub +0.0202. Olam +0.0103. SIA Engg +0.010

The top 5 loser component stocks were :-

1. JSH USD -0.5502. SGX -0.3203. DBS -0.3204. UOB -0.2205. SIA -0.190

US markets fell average more than 1% last Friday and Asian bourses were in a sea of red for the day with Nikkei -0.95%, SSE -8.48% and HSI -3.09%. STI in line with regional bourses fell 1.17% in thinner volume and value than past days with only 3 of the 30 index stocks managed to register a gain.

Disappointing corporate earning and concern of China economy after the weak set of flash PMI triggered a sell down in US markets. The bearish sentiment continued into Asian markets today with SSE plunged more than 8%. Furthermore, this week US Fed FOMC meeting also weighed on investors as most expected US Fed to announce officially when will be the first rate hike.

STI fell more than 1% with selling off blue chips and further weighed down by banking stocks. DBS reported a better than expected 2Q earning but warn of concern of a weak 2H put all the banking stocks under selling pressure thereby dragging down the index. Broader market also taking cautious stance including those of penny punting. Short term investors might want to wait for clearer signal but for long term investors, look out for bargain hunt opportunity.